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3 Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms: 12
3 Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms: 12 Silver Enterprises points Current Current $ 6,400 4,400 assets liabilities Other Long-term debt 2,800 9,100 assets ook Net fixed 31,300 Equity 27,000 assets Total $40,500 Total $40,500 Print References All Gold Mining Current Current $2,900 $1,670 liabilities assets Long-term debt Other 830 assets Net fixed 13,200 Equity 15,260 assets $16,930 $16,930 Total Total Construct the balance sheet for the new corporation assuming that the transaction is treated as a purchase of interests for accounting purposes. The market value of All Gold Mining's fixed assets is $14,450; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $21,000 in new long-term debt to finance the acquisition Silver Enterprises, post-merger Current 2,900 1,670 Current assets $ $ liabilities 830 Long-term debt 14,450 Equity 4,490 22,670 21,000 Other assets Net fixed assets Goodwill $ 22,670 Total Total
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